Lannebo Europe Small Cap was launched in October 2016 and is managed by Carsten Dehn and Ulrik Ellesgaard, both of whom have extensive experience in active fund management with a focus on European small caps. During 2017, the fund returned 27.4 per cent, which is five percentage points better than the benchmark index.*
The Swedish magazine Privata Affärer awarded Lannebo Europe Small Cap “Rookie Fund of the Year” based on the following motivation:
“Continuing success in a new formula.”
The fund market Fondmarknaden.se selected the year’s award winners following an evaluation of 1,800 funds. In January, Lannebo Europe Small Cap was awarded “Newcomer of the Year” with the following motivation:
“A fund whose managers on two previous occasions has received awards from us, now with a new employer, launched a new fund with the same management concept in the fall of 2016. The fund’s management results have also been successful in 2017. This fund invests in European small and medium-sized listed companies. We look forward to following the duo’s successful investment strategy and hereby appoint the fund as the Newcomer of the Year.”
Carsten Dehn and Ulrik Ellesgaard: how do you explain the fund’s strong results?
– 90 per cent of our excess return comes from stock picking – so there is no single sector that has accounted for the return. We have a highly structured process, with a long-term perspective, for choosing shares, and we are equally as strict and disciplined when divesting shares, says Carsten Dehn.
– An important aspect to our returns is that we avoid land mines, adds Ulrik Ellesgaard and explains:
– We work meticulously with fundamental analysis and we avoid companies with high indebtedness or financial problems. If we find that a portfolio company’s strategy or business model does not work, we are quick to sell. Our divestment discipline is as strict as our buying process.
Ulrik Ellesgaard and Carsten Dehn
* Return after fees for the full year 2017 (01-01-2017 to 31-12-2017) 27.4 per cent. Benchmark index MSCI Europe Small Cap Index 22.1 per cent (01-01-2017 to 31-12-2017). The fund’s start date was 2016-10-17. Return since start (per 31-12-2017) 24.7 per cent. Benchmark index 27.3 per cent (17-10-2016 to 31-12-2017).